TSKB and Alarko Agriculture Sign EUR 80 Million Loan Deal for Modern Geothermal Greenhouse Investment
TSKB and Alarko Agriculture Group has signed a loan agreement worth EUR 80 million as part of the first project finance initiative in agriculture in Türkiye, with the International Bank for Reconstruction and Development (IBRD), a World Bank organization, being the lender. Already crowned the largest modern greenhouse investment in Türkiye, the project will be developed on a land of 850 decares in Eskişehir and aims to improve access to sustainable and safe food.
Alarko Agriculture Group signed a loan deal of EUR 80 million with TSKB (Industrial Development Bank of Türkiye) for Türkiye's largest modern greenhouse project in Eskişehir, with the International Bank for Reconstruction and Development (IBRD), a World Bank organization, being the lender. The 12-year loan with a grace period of 2 years is the first project finance initiative in agriculture in Türkiye and will be used by Nata Tarım Üretim ve Ticaret A.Ş., a subsidiary of Alarko Agriculture Group, to launch a geothermal-based technological greenhouse investment on a land of 850 decares.
Ümit N. Yıldız, CEO of Alarko Group of Companies, stated that the loan deal with TSKB, Türkiye's leading sustainable banking organization, would make a significant contribution to Alarko Agriculture Group's goal of entering the global top 10 in geothermal greenhouses within 5 years. "Our modern greenhouse investments are the engines of our 360-degree vision in agriculture. Alarko Agriculture Group is currently one of the largest modern greenhouse operators in Türkiye, boasting investments in Afyonkarahisar, Denizli and Eskişehir. The planned investment in Eskişehir is Türkiye's largest modern greenhouse project and will be one of the best examples of sustainable agriculture. For our project, TSKB has offered valuable support in funds worth EUR 80 million, which is of great significance as it reflects not only the contribution of our investment to local development but also the confidence in Alarko's identity as a responsible investor."
TSKB CEO Murat Bilgiç also commented on the deal. "As Türkiye's first and only private-equity development and investment bank, TSKB is celebrating its 75th anniversary this year. We have been offering funds and advisory support to Türkiye's strategic development areas since the day our Bank was established. Within an ecosystem-restoring banking approach, we determine our focus areas to create benefits and value for today and for our sustainable future. We are delighted with our deal with Alarko Agriculture for the modern greenhouse project in Eskişehir, which will break a new ground in sustainable agriculture in Türkiye. We believe that sustainable agricultural practices bearing environmental, human and economic sensitivities will make a significant and multidimensional difference ranging from the protection of ecosystem balance to the efficient use of natural resources and from food security to product quality. I hope this valuable deal will be auspicious for Eskişehir and our country alike and will set an example for spreading sustainable agricultural practices throughout Türkiye."
The project will employ over 800 people
The modern greenhouse will be commissioned on a land of 850 decares in Eskişehir in cooperation with Nata Agriculture, a subsidiary of Alarko Agriculture Group in modern greenhouse operations. The project will offer direct employment opportunities to over 800 people, 75% of whom will be women.
Greenhouse areas will be heated cyclically using geothermal energy, a renewable energy source, and innovative technologies will be maximally utilized for an efficient use of water resources.
